SBI Mutual Fund and global private equity firm Permira are set to invest ₹450 crore in Urban Company through a secondary share purchase, marking a significant pre-IPO funding move ahead of the company’s public listing later this year.
Urban Company, India’s largest tech-enabled home services marketplace, has attracted ₹450 crore in pre-IPO funding from SBI Mutual Fund and global private equity firm Permira. The investment comes through a secondary share purchase, with existing early-stage investors — including Accel, Bessemer Venture Partners, Tiger Global, and Elevation Capital — selling part of their stakes.
This capital move is seen as a strong signal of investor confidence in Urban Company’s business model and growth trajectory ahead of its much-anticipated Initial Public Offering (IPO) later this year.
Urban Company’s IPO Plans
Urban Company filed its Draft Red Herring Prospectus (DRHP) with SEBI in April 2025. The IPO comprises:
- Fresh Issue: ₹429 crore worth of new shares
- Offer for Sale (OFS): ₹1,471 crore from existing shareholders
The IPO will enable Urban Company to bring in fresh capital for expansion while also offering early investors partial exits.
Also Read: Urban Company Posts ₹239 Cr Profit, Prepares for Blockbuster ₹1,900 Cr IPO
Planned Utilisation of IPO Proceeds
The company plans to strategically allocate the IPO proceeds as follows:
- Technology & Cloud Infrastructure: ₹190 crore to enhance platform capabilities, AI integration, and cloud-based solutions to improve service efficiency and customer satisfaction.
- Office Expansion: ₹70 crore to set up and upgrade offices in key domestic and international markets.
- Brand Development & Marketing: ₹80 crore for campaigns across TV, digital, outdoor, and OTT platforms to increase brand penetration.
- General Corporate Purposes: Remaining funds will go towards operational efficiency, working capital, and selective strategic investments.
Strong Financial Growth
Urban Company has reported impressive financial growth in recent years:
- Revenue: Increased from ₹437.6 crore in FY22 to ₹828 crore in FY24
- Profitability: Achieved an adjusted EBITDA of ₹9.3 crore in the nine months ending December 31, 2024, marking a shift from losses in earlier years
- Net Profit: ₹242.3 crore for the same nine-month period
The company’s robust financial turnaround highlights effective cost management and operational scalability.
Market Position and Competitive Edge
Operating in 59 cities across India, the UAE, Saudi Arabia, and Singapore, Urban Company has established itself as the category leader in organised home services. Its competitive advantage lies in:
- Standardised Quality Control: Verified professionals and service guarantees
- Wide Service Range: Beauty, grooming, cleaning, appliance repair, and home maintenance
- Tech Integration: AI-driven service matching, partner training modules, and customer feedback systems
With growing demand for organised home services, Urban Company’s IPO is expected to draw strong institutional and retail investor interest.
Also Read: India’s Fintech Shake-Up: Jar’s Unexpected Path to Profit
IPO Timing and Market Context
The IPO is expected to hit the market in late 2025, a period when several consumer-tech companies are seeking listings amid reviving investor appetite for growth-oriented businesses with proven unit economics. The participation of domestic institutional investors like SBI Mutual Fund, alongside a global player such as Permira, is likely to enhance the company’s credibility ahead of the public issue.
Urban Company’s ₹450 crore pre-IPO funding round is more than just a financial transaction — it is a strategic milestone that strengthens its position for a successful public listing. With strong revenue growth, improving profitability, and expanding market reach, the company appears well-positioned to capture investor interest and sustain long-term value creation.
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